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Demand equation is given by the r= 1/30Q and the supply equation is given by r=Q-0.46Q, where r is the real interest rate expressed as
Demand equation is given by the r= 1/30Q and the supply equation is given by r=Q-0.46Q, where r is the real interest rate expressed as a decimal, and Q is the quantity of loanable funds.
1- sketch the demand and supply equations representing r in the y- axis and Q in the x-axis?
2- Find the equilibrium real interest rate for the loanable funds market
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